States, eager to replenish their coffers, are doing their darndest to convert SaaS products into taxable, electronically-delivered software. Every state auditor on the hunt for a mega assessment turns to the vendor’s service agreements, searching for any hint as to how the SaaS products should be treated – as services (typically not taxable), or as software (taxable). To make this determination, auditors look at how a SaaS vendor describes itself in its SaaS agreements.
Source Contractnerds.com
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